With Snowflake the boutique up almost 2x from its IPO price, it is very likely that employees and investors will choose to cash out as the post IPO lockup periods expire, putting downward pressure on the stock. Investors buy stocks for various reasons. Facebook’s strengths are built upon using the information that users provide about themselves to better target advertising and generate revenues, but Facebook and its investors have been unwilling to face up to the reality that the company’s high margins reflect its use of third parties and outsiders to collect and manage data, a business practice that is profitable but that also creates the potential for data leakages. While the user numbers have leveled off in North America, where Facebook already counts 72.5% of the population in its user base, the company continues to grow its user base in the rest of the world, with an added impetus coming from the scaling up of Instagram, Facebook’s video arm. The first few months after the offering were tough ones for Facebook, with the stock dropping to $19 by September 2012, when I argued that it was time to befriend the company and buy its stock, one of the few times in my life when I have bought a stock at its absolute low.
Advanced Micro Devices Inc. will now have resistance located $8.15. Orexigen Therapeutics, Inc. (OREX) – OREX stock had another breakout after releasing huge weight loss drug news Friday night. Put on the defensive, after the 2016 US presidential elections, for being a purveyor of fake news, Facebook announced in January 2018, that it had changed its news feed to emphasize user interaction over passive consumption of public news feeds. To undersand how Facebook became the company that it is today, let’s start with its most impressive numbers, which are related to its user base. In my book on connecting stories to value, I pointed to Facebook as a company that seemed to find new ways, with each acquisition, announcement and earning report, to expand and broaden its story, first by conquering mobile and then going global. Collectively, users spent more than an hour a day on Facebook platforms, and that usage does not reflect the time spent on WhatsApp, also owned by Facebook, by its 1.5 billion users. While rates were low in the 2009-2017 time period, and the Fed did play a role (the Fed effect lowered rates by 0.77%), the primary reasons for low rates were fundamental.